SDM Live Project: P&G Group 16 B

Sales and Distribution Management

Final Project Report

Group 16 B

Project Company: Proctor and Gamble (P&G)

Group Members
B18159 – Rahul Ravindran
B18163 – Rudra Chandak
B18169 – Shreya Tripathi
B18181 – Yash Dalvi

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SDM Live Project: P&G Group 16 B

Table of Contents

Project Objectives ...................................................................... 3

Background ................................................................................ 3
About P&G ................................................................................. 3
P&G’s Channel Structure and Strategy ...................................... 3
Methodology.............................................................................. 5
Retailer Observation Table ........................................................ 7
Timeline.................................................................................... 11
Findings .................................................................................... 12
Recommendations ................................................................... 15
Appendix .................................................................................. 16

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SDM Live Project: P&G Group 16 B

Project Objectives
To recommend an action plan to turnaround Top Channel retailing business in Jamshedpur. Top
Channel consists of Minimarkets (MM1, MM2 – mostly self-service outlets) and Large (Large A, B
- Traditional, Large A, B - Pharmacy & Large A – Beauty; over-the-counter) Stores.

Background
Jharkhand business is growing organically, but the growth in Top Channel is flat for P&G, at 100
index points.

About P&G
P&G is one of the largest and amongst the fastest growing consumer goods companies in India.
Established in 1964, P&G India now serves over 650 million consumers across India. Its presence
pans across the Beauty & Grooming segment, the Household Care segment as well as the Health
& Well Being segment, with trusted brands that are household names across India. These include
Vicks, Ariel, Tide, Whisper, Olay, Gillette, Ambipur, Pampers, Pantene, Oral-B, Head & Shoulders,
Wella and Duracell.
P&G operates under three entities in India - two listed entities “Procter & Gamble Hygiene and
Health Care Limited” and ‘Gillette India Limited’, as well as one 100% subsidiary of the U.S. parent
company, called ‘Procter & Gamble Home Products’, currently contributing 2.5 % to the
company’s global turnover.
Under the revamped strategy of P&G India’s MD and CEO Madhusudan Gopalan, who took over
the reins in India last year, P&G had initiated a restructuring exercise, with an objective to
increase sales and productivity. The company had last year launched more India-specific
products, improved its speed to market, and increased productivity. It is also working on
expanding it reach across the country through a network of seven million outlets. Head &
Shoulders has been the top brand in the shampoo category for three months, as of March 2019.

P&G’s Channel Structure and Strategy

P&G has its retail channel stores classified under Large, Medium and Small stores, depending on
the quantity and type of products, and the type of customer purchases. The major set of
differences here are in terms of SKUs size and variety, the amount of business done with P&G
etc.
The Large set of stores mainly consist of Modern Trade, Super markets & Hyper markets, Mini-
Markets (including self-service stores), and Large Stores (Traditional, Pharmacy and Beauty
stores). These are generally the top-quality, good looking stores (some of these are air-

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SDM Live Project: P&G Group 16 B

conditioned as well). These stores stock every major company’s products, and all the brands
relevant to the stores with multiple SKUs including the large SKUs (e.g. shampoo bottles) or high-

end SKUs (e.g. premium razors).

The key strategies here are focused on proper product placement and display. Since almost all
competitor products are present, it is important to have the product available at the store, and
on the shelf visible to the customer. These products should also be in the shopping list of the
customer, which is something difficult to control or influence. Every stock-out is a lost
opportunity, hence, company sales-person has to ensure the products are adequately stocked
based on the demand. The stores also take use promotional strategies, of their own or as offered
by the company.
P&G has a monthly incentive-cum-display based scheme for the retailers. Other then general 8-
10% margins which the company gives (depending on the products and channel), the company
has 2 Focus Brands every month. The company gives an extra 3% for having Floor Stacked Units
(FSUs) for these focus brands, and an extra 1% each for the minimum order of each of these
brands, thus totaling for an extra 5% on the monthly bill. In lieu of the company’s audit terms,
this benefit is added to the retailer’s next month’s purchase bill.
The company also targets prime visibility locations and shelves, called smart spots, like, the eye-
level shelves or the shelves immediately behind the cash counter, and gives incentives on an
exclusive shelf product placement basis. The company has its visual merchandisers who visit the
stores and help the retailer set up the visual displays.

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SDM Live Project: P&G Group 16 B

Methodology Followed
1. We received a list of 181 shops of Jamshedpur stores, from the P&G Distributor, where P&G
products are currently sold. The list was evenly divided among the three groups working on
this project, and our group was assigned 61 Stores.

2. We found 40 of the 61 Stores, based on the coordinates from the document, on Google Map.
The stores were divided into 4 Clusters: Sonari (12 stores), Kadma Market (15 stores),
Bistupur (5 stores) and Adityapur (6 stores). [Location of various clusters shown in Figure 1]

3. Of the final list of 40 stores, we covered the following set of stores: Sonari (9 stores), Kadma
Market (9 stores), Bistupur Market (5 stores) and Adityapur (4 stores).

4. For Cluster 1 in Sonari, nine shops were chosen from

the 12 stores (Location is shown in Figure 2). The
type of the shops covered in this region was the
following:
a. Traditional Stores – 3

b. Pharmacy – 3

c. Beauty Stores – 1

d. Mini-marts – 2

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SDM Live Project: P&G Group 16 B

5. For Cluster 2 in Kadma Market, nine shops were

chosen from the 15 stores (Location is shown in
Figure 3). The type of shops covered in this region
was the following:
a. Traditional Stores – 3

b. Pharmacy – 4

c. Mini-marts – 2

6. For Cluster 3 in Bistupur, five shops were chosen

from the 15 stores (Location is shown in Figure 4).
The type of shops covered in this region was the
following:
a. Traditional Stores – 2

b. Pharmacy – 2

c. Mini-marts – 1

7. For Cluster 4 in Adityapur, four shops were chosen

from the 15 stores (Location is shown in Figure 5).
The type of shops covered in this region was the
following:
a. Traditional Stores – 1

b. Pharmacy – 3

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 SDM Live Project: P&G Group 16 B

Retailer Observation Table

These are our observations and comments from some of the stores we had visited for the project
Channel
Retailer Name Locality Comments
Description

 Uses HUL’s Shikhar app for

retailer orders in case of
emergency stockouts
M/S Chanda Large A
KADMA  1-week credit period
Stores Traditional
 No FSU or display scheme –
says incentive not enough
and multiple checks

 Major sales are for medical

products and less for FMCG
 No front display for diapers,
M/S Nilesh Large A sanitary napkins etc.
KADMA
Medical Pharmacy  Shampoos have a turnover
of about 15-days
 Stayfree display over
Whisper products

 Rs.600 per month per brand

for display promotions
 1-week credit period
 Mentioned HUL having
prompt delivery service
M/S Bholenath Large A
Bhandar Traditional
KADMA  However, the store faces
space crunch so keeps
smaller sachets which sell
more than larger SKUs:
Small packets of shampoo
and Surf sell more

 Self-service store, with own

support staff
 Properly segregated product
displays
 Visual merchandisers help in
M/S Arjun Store MM 1 KADMA
setting up displays
 All types of SKUs available,
incl. large ones
 Offers own schemes to meet
monthly incentive targets

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 SDM Live Project: P&G Group 16 B

 Not much interactive or

interested
M/S Modi Large
KADMA  Mixed displays both inside
Medical Pharamcy
and at storefront

 Cluttered display
positioning: Multiple SKUs
stacked together
 Products like Whisper were
Large A kept at top shelfs away from
Bajrang Stores KADMA
Traditional normal level of sight
 Ambipure was hidden
behind other products
 FSU Labelling was not
standing out

 Stressed on the display

Large A
M/S Saroj Stores KADMA promotions, typically
Traditional
receives Rs.200 to 300 per
month for shelf displays

 Stressed heavily on the

diapers segment being
popular and particularly
Manny Poko Pants
(customers ask for it)
 Window displays were
M/S Shobha Large A
KADMA blocked from outside, so
Medicals Pharmacy
brands not directly visible
 Just had a single Gillette
strip hanging which is
unusual for a medical shop
 Weekly salesman visits for
stock

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 SDM Live Project: P&G Group 16 B

 Stocks 3 to 4 SKUs for

Pantene and H&S. These are
the most popular brands as
Large B ADITYAPUR per the employee in the
Mittal Medical
Pharmacy BISTUPUR shop
 Did not stock Whisper and
brands such as Vicks and
Gillette were not visible
upfront

 Nestles and J&J give the

best schemes in FMCG
space
M/S DAS Large B
SONARI  Satisfied with P&G incentive
MEDICAL STORE Pharmacy
structure
 On bill reimbursement is a
good thing, the retailer said

 Olay sales better in winter

season
 Gillette sales are the
maximum always
 P&G also goes upto giving
13-14% when schemes are
M/S SUPER Large B good
SONARI
CENTRE Pharmacy  Display schemes keep
changing
 Merchandiser visits once a
week
 Salesmen visit twice a week
 Whisper sales better than
Stayfree
 Retailer said they get 1.1%
margin on Head & Shoulders
 Credit policy - 1 week
 P&G gives targets and then
on bill reimbursement
 Different salesmen
sectorwise(for ex- different
Large B
M/S MY SHOP SONARI for Gilette and Shampoos)
Traditional
 Merchandisers visit once a
week
 Happy with damage policy
because not much damage
anyway
 P&G give better schemes as
compared to other FMCGs

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 SDM Live Project: P&G Group 16 B

 Sales have gone down

because of modern trade
 But people from nearby
Large B locality are fixed
LAXMI BHANDAR SONARI
Traditional  Gillette big display at
counter
 Olay sales have gone down
Satisfied with P&G schemes

 Oral B gives 20% margin

 Mamy Poko Pants has better
schemes than Pampers
 Whispers and Pampers sales
M/S NEW Large B are the highest in all P&G
SONARI
MEDICAL STORE Pharmacy products
 The damage policy is not
good
 Godrej Aer gives better sales
than AmbiPur

 The sales have gone down

 Happy with P&G incentive
structure
 HUL gives 4% extra
 Gillette, Tide, Blue Surf sales
Large B are the highest
M/S Binod Store SONARI
Traditional  Not happy with the damage
policy
 Major competition from
Modern Trade
15 Days Credit Policy by
P&G(best in all)

 Separate salesmen for Olay,

Gillette, Shaving cream,
separate for Shampoo,
M/S SANJEEV Large B
SONARI Whispers, Pampers
MEDICAL Pharmacy
 Pampers and Whisper sales
form the major sales
component of P&G
 Sales have gone down

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 SDM Live Project: P&G Group 16 B

 Retailer said they get 3-4%

margin on all products
 Tide & Ariel sales are the
maximum
 Get additional 1% on sales
targets
SHREE BAJRANG SONARI+SAK
MM 2  HUL display schemes are
STORE CHI
better than P&G
 No credit, only cash policy of
P&G
 Mamy Poko
schemes(consumer+trade)
are better than Pampers

TIMELINE

# Task Week 1 Week 2 Week 3 Week 4 Week 5 Week 6

1 Understand GTM Strategy of P&G

2 Conduct Market Visits to Retailers

3 Identify Key Business Drivers

Understand Market Dynamics of

4
Competitors
Propose Short-Term and Long-
5
Term Recommendations

6 Final Report Writing

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SDM Live Project: P&G Group 16 B

Observations

 Generally, the overall margins ranged around 10 – 15 % on various products/product

categories. The extra margin on display was about 1%, depending on the shelf size. These
were comparable across different companies in the sector.
 Among different categories:
o Mamy Poko Pants performed better
than Pampers in baby diapers.

o Godrej Aer performed better than

Ambipur. In one case, a shelf which had
a label of Ambipur was stocked with
Godrej Aer.

o Surf Excel was preferred over Tide in

the detergent market.

o Stayfree was more in demand

compared to Whisper in Sanitary
Napkin category. However, we also
observed a new brand by the
pharmaceutical company
Glenmark, occupying the eye-level
shelves of a mini-market.

 Most small shops did not have a distinct demarcation of

products or brands. In one case, Dove and Pantene
bottles were placed together and were not easily
differentiable because of similar packaging.
 Retailers cited HUL as having better distribution and
merchandising system than P&G. This was attributed to
better and timely delivery of goods to the retailers. One
of them also mentioned the use of HUL’s mobile
application ‘Shikhar’ for retailers
 Most small shops did not have a distinct demarcation of
products or brands. In one case, Dove and Pantene
bottles were placed together and were not easily
differentiable because of similar packaging.
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SDM Live Project: P&G Group 16 B

 Retailers cited HUL as having better

distribution and merchandising
system than P&G. This was
attributed to better and timely
delivery of goods to the retailers.
One of them also mentioned the use
of HUL’s mobile application ‘Shikhar’
for retailers.
 Customers prefer larger pack sizes
than smaller packs or sachets, primarily because of monthly consumption cycles.
Retailers also prefer the same because of lower probability of damages or missing units.
This is also considering a poor damage replacement policy by most of the companies.
 The credit period ranged from 1 to 2 weeks, depending on the grade of the store and
the type of product. For most FMCG products, it was one week. However, the retailer
could have a maximum of 1 bill order on credit at any time, whatsoever be the minimum
amount.
 The company salesperson visited the shops once a week generally to take the orders.
There used to be a different salesperson for different categories, up to a maximum of 2.
The rules were typically delivered within a day or two. The visual merchandiser also
visited once in a week or two.
 Most of the traditional stores did not opt for visual merchandising. They said that the
benefits were too low to dedicate that amount of inventory, and they had to continually
keep that updated when the company people came for a visit.
 Retailers cited offers given by companies to modern retail as a primary hindrance for
their growth. According to them, because of offers like ‘Buy 1 Get 1’, modern retail can
sell products at a rate at which the traditional retailers cannot even procure and hence
are not able to provide those benefits to the customers.
 Customers generally ask for a specific brand to the
retailer which they provide and hence try to keep
them in stock. They do not seek or instead do not
‘have a salesman’ to attempt at convincing the
customer to buy a different brand.
 In the case of Arjun stores, a mini-market, we had
some unique observations.
o The retailer used to offer his customer
schemes over and above the company
schemes. They had special discounts for
events, like, Independence Day.

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SDM Live Project: P&G Group 16 B

o The retailer used to club the company’s

target offers with other products and thus
achieved the objectives, as well as cross-
selling and profits.
o He also stocked only medium and large
SKUs of almost all products, with well-
demarcated shelves and visual display for
each product brand.
o He had a special Floor Stacked Unit for
Nivea, which he said was a heavy margin
product for them (up to 25 %)
 There is something called a “brand margin”. Even if the retailer takes 1 piece of product,
P&G has to give it to them. Another thing is the “scheme”, which differs month to month.
The company keeps updating it.
 Brand Margin on Gillette is 12%, Tide/Ariel is 8% and Pampers is 15-20%.
 This month scheme is that – for tide on buying 1500 worth of tide, they get 3% additional;
for Pampers they get 6+1.
 This also differs for different store formats – traditional, pharmacy and beauty/cosmetics
shops. Hence, they have different schemes because for example, cosmetic stores sell
more of Gillette or Olay, traditional sell more of Tide/Ariel. So the schemes are different
category wise.
 Then there is a corporate plan, which is again different for mini markets, super markets.
There are 3 super formats in Jharkhand, that too in Ranchi.
 If the sales are improving and reach beyond a limit for a large B store, it is shifted to large
A store. Shelf-counter shops become mini markets.
 The company takes share of shelf in mini markets. So, this has to be there in all stores.
For example, Tide/Ariel has a share of shelf of 35% minimum.
 Oral B and Gillette do not have shelves. They have stands or FSUs. The companies get
additional 3% category wise for display.
 There are two sectors – 1 &2. So, if sector 1 salesman visits on Monday, sector 2 salesman
will visit on Thursday. Sector 1 products are different from sector 1.
 Sector 1 - If the store target is achieved, then the retailer gets 2% additional. Otherwise
for maintaining Share of Shelf, he gets 3% anyway. This 2%, he gets next month after the
15th of that month on any transaction or trade he does with the company.
 Sector 2- Gillette, Oral B. these have FSUs. The company people check if this is proper
through pictures on their apps. If this passes in the audit, then 3% they get for the
category space. Then there is a focus brand per month for which the retailers get
additional 2%. This minimum amount has to be given to each store.
 Currently the focus brand in sector 2 is Oral-B and a new variant of Gillette.

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SDM Live Project: P&G Group 16 B

Recommendations

Short Term
 Show the benefits of schemes in retailers’ terms. Most of the stores here do not have any
incentive to go for display units or dedicated shelf spaces, because of lower benefits. The
benefits of these incentives need to be communicated in terms of extra amount earned
over their regular sales, and how fast they can turn this inventory, thus making an annual
profit.
 Simultaneously, instead of product specific shelves, we can have an option for company
exclusive shelves for the retailers who do not take these schemes citing low benefits.
Hence, instead of 6 shelves for 6 products, we can propose 4 shelves for 6 products,
depending on the retailer sales. Hence, getting a visible dedicated area for company
products becomes easier.
 Have displays of products which are purchased on impulse or unplanned (or where the
customer remembers that requirement only when he/she sees it on display) above cash
counters and/or on the storefront displays

Long Term
 Plan and implement a feedback mechanism for the vendors. This will help collect data on
whether the strategy put in place by the company is being implemented properly on the
field. This can be a monthly or quarterly feedback with parameters like, salesman connect,
timely delivery, condition of goods, impact/benefits of incentive schemes provided etc.
 Most large stores cite modern trade as a big competitor affecting their sales, as they
cannot even match their procurement costs with the modern trade outlets’ selling prices.
Hence, bundling of products can be done for SKUs which a household needs, for example,
once every week or month and sold via these retail outlets at lower prices than their
normal prices. This will retain the customers who go to modern trade stores to purchase
these bundles from the traditional stores because of the bulk bundle discounts, as well as
have the retailer stock more of the large sized SKUs.
 Like HUL’s Shikhar, we can have a smartphone app-based purchase order and retail
incentive brochure. The retailers can refer to it for monthly schemes and place orders (for
emergency stockouts initially). Alternatively, we can also have the application only for
order. Here, the salesperson’s job would be to have weekly calls to promote incentives,
understand market condition and maintain retailer connect, thus saving time for the
salesman.

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SDM Live Project: P&G Group 16 B

Appendix

References
1. https://www.pg.com/en_IN/company/pg-india.shtml
2. https://www.livemint.com/companies/news/p-g-india-s-revamped-strategy-helped-clock-
strong-sales-says-ceo-1553651833970.html

Transcripts
Please note these transcripts are a summary of the conversation and not a word for word
documentation

Interview 1 - Small Retail Shop

Que.- What are the current P&G products available in the store?
The retailer said all products are present. On asking can he name some (to understand if he knows
which are P&G products and also to understand brand recall of P&G products), he said Tide, Ariel,
Gillette and others.
Que.- What are the corresponding competitor products available in the store?
The retailer started with Surf Excel as a competition to Ariel and Tide. On asking about more
products, he said that Gillette has no game where whisper has competition from Stayfree.
Que.- How are P&G brand products performing concerning other competitor brands?
He said Surf Excel is preferred by consumers, but after liquid variants of Tide and Ariel have come
up, they have increased sales. Gillette has no competition. Whisper has better sales than
Stayfree, but Stayfree also works. Generally, consumers are brand loyal in this category. They ask
by the name of brand in sanitary napkins category.
Que.- What are the consumer preferences concerning brands in the various categories?
Consumers prefer Surf Excel in detergents and Whisper in sanitary napkins. Rest the retailer said
there’s nothing as such. Olay is a product which only works in winter. He said Olay sales go down
in summers. Mamy Poko Pants offers better consumer promos than Pampers and hence sells
better seasonally. Godrej Aer is also more preferred than AmbiPur.
Que.- What are the differences in the trade schemes and margins offered by the companies?
The retailer said that P&G does not offer good trade schemes as compared to few other FMCGs.
He said that the programmes used to be much better earlier, but now the company has shifted
focus to shops like Big Bazar. Margins are comparable with others like HUL, J&J but there are few
exceptions. Nivea, for example he said provides higher margins (25%) as compared to P&G 10-
12%.

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SDM Live Project: P&G Group 16 B

Que.- What additional branding and merchandising schemes are being deployed in the store?
The retailer showed us shelf strips that all FMCGs are using these days. He said that for visibility,
like P&G, all competitors give about 1% additional on bill. But he said that the other companies
still increase their pay-outs seasonally, but P&G does not give them much incentive.
Que.- What credit period is offered by the companies to the retailers?
The retailer said that all companies give a credit period of about a week. But P&G gives 15 days
to him as he is a trusted retailer.
Que.- As a Retailer, what are the current issues faced concerning P&G Products?
The retailer said that the damage policy of the company is not good. He noted that P&G does not
take back damaged products and they keep delaying it despite complaints from the retailer to
salespeople. Another issue, he said, was that the company is not giving them enough incentives.
A 1% additional pay-out is very less for a company like P&G which is a big player. These are the
two main things he was not happy with.

Interview 2 – Medical Shop

Que.- What are the current P&G products available in the store?
They keep Whisper, Pampers, Oral-B and Gillette. The shopkeeper said they are a medical store,
so nothing else gets sold there.
Que.- What are the corresponding competitor products available in the store?
Stayfree and Sofy were there for Whisper’s competition and Mamy Poko Pants for Pampers.
Que.- How are P&G brand products performing concerning other competitor brands?
The shopkeeper said that the small packet of Whisper sells very well as compared to all others.
Stayfree also is a very preferred napkin. Pampers sells better than Mamy Poko Pants. Oral- B is
working well, but many-a-times people come and buy medicinal toothpaste if suggested by
doctors.
Que.- What are the consumer preferences for brands in the various categories?
Consumers prefer Whisper over Stayfree sometimes, but some might straightaway ask for
Stayfree by the name. Pampers, however, works the best in its category. Oral-B is preferred,
especially in toothbrushes.
Que.- What are the differences in the trade schemes and margins offered by the companies?
P&G generally gives a margin of 10-14% depending on the product while other significant players
like J&J and HUL give 10-12%. They said that they get right margin on Oral-B, ~20%.

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SDM Live Project: P&G Group 16 B

Que.- What additional branding and merchandising schemes are being deployed in the store?
There was very less branding in the shop because of the paucity of space. The retailer showed us
a set of 3 shelves that P&G had branded, but they were not keeping P&G products in it. It was
impure and empty. Gillette, however, had a proper hanging display right at the back of counter
in the aerial space. The glass under the desk had whispers and Pampers and even the side glasses.
They had posters of Sofy at the table. On asking if they got special pay-out for the signs, they said
no and that the salesmen just pasted it there. For rest they did not get much incentivisation for
display by any company as there is insufficient space in a medical shop.
What credit period is offered by the companies to the retailers? They said everyone offers a credit
period of about one week.
Que.- As a Retailer, what are the current issues faced for P&G Products?
They said there were no issues as such, but they could be paid more for display of P&G products
in hotspots in their shop. Otherwise they said there was no issue that they faced. The salesmen
also visited them regularly and took orders and they were happy with the firm.

Interview 3: Chanda Stores (Kadma)

Point of Contact: Mr Manish Agarwal
Que.- We wanted to know about the FMCG products that you stock and how their sales have
been?
He mentioned all major brands and their sub-brands. Added on that the sales have taken a hit
due to the families shopping at Big Bazaar or other modern retail shops that consistently provide
offers and discounts that his shop cannot. He also mentioned that beyond sales the attitude of
the shoppers towards smaller shops like his is turning increasingly negative. The shoppers believe
that the smaller shops are ripping them off in comparison to modern retail outlets.
Que.- Do you not receive any promotions from FMCG companies to compete with modern retail?
He mentioned that there are occasional promotions, but the monetary incentives are not enough
due to scale. The cited example of an Rs.1 margin to general retailers competing against a Buy 1
get 1 Free available in Big Bazaar.
Que.- Do you benefit from FSUs and other display scheme?
He mentioned that the average benefit is around Rs.500 to Rs.600 per month, which is not a
significant incentive. Also, he said that the FSUs are not apt for all products (mostly useful for
chips)
Que.- Do the salesman come and check on the display schemes and advise how to go about it?

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SDM Live Project: P&G Group 16 B

He mentioned that there are multiple checks for the displays. Typically, companies advice on how
to brand and provide the streamers and tapes to highlight shelf space. These agents are separate
from those that come to take orders for stock.
Que.- How often do the salesmen visit the shop for the stock?
The salesmen visit 1 to 2 times a week depending on the brand and time of the year. Delivery is
usually next day but sometimes by the same day evening.
Que.- What do you do in case of stock out?
They obtain stock from wholesalers via all-cash transaction. Explicitly mentioned HUL’s Shikhar
app.
Que.- Was uncertain about its benefits as he prefers to order from the agents he knows. Q: What
are the credit terms?
1-week credit period. He mentioned that they could not order while the previous credit is
outstanding. Most of the times, they go for all-cash purchase to avail a discount
Que.- What products give the highest margins?
Gave a vague answer but mentioned on average, he receives 8% margin.
Que.- What is the policy for damages?
He said that it’s not too great and tedious. Therefore, mostly, they don’t even ask for a refund.

Interview 4: Arjun Stores

Que.- We wanted to know about the FMCG products that you stock and how their sales have
been?
He mentioned that he stocked almost all brands across all categories. In the shampoo products
category, Nivea was selling the best due to the optimal position of the display. Nivea had paid for
an entire column with their PoP branding offering deep discounts to retailers. Pantene and head
and shoulders also had entire FSUs, but they were placed at the back of the shop and thus
inaccessible.
Que.- Can you explain the promotions you get from companies?
Most of the promotions were given by the shop themselves and not the FMCG company. He
explained how for the brand like Ariel, the company gave half off the MRP and that he added a
bucket as a promotional item. Because the bucket is cheap, he still makes a profit, and everyone
benefits.
Que.- Do you benefit from FSUs?

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He said that most of the companies don’t give many incentives for branding and display unless
it’s a significant product push season-wise. That’s why he makes his offers.
Que.- Do the salesman come and check on the display schemes and advise how to go about it?
They take measurements of shelves and provide branding material accordingly. When a scheme
is running, the representatives come once a week.
Que.- How often do the salesmen visit the shop for the stock?
The salesmen visit every week. In the case of stock out, they call him twice. He said that being a
big shop their stock turnover is high.
Que.- What are the credit terms?
1-week credit period.

Interview 5: Bholenath Bhandar (Kadma)

Que.- We wanted to know about the FMCG products that you stock and how their sales have
been?
He mentioned all major brands and their sub brands. The store is mixed with long shelf life
groceries which is what brings locals. He mentioned that shampoo, soaps, detergents and biscuits
are the most sold items.
Que.- Which company’s products sell the most and which company do you think is easier to work
with?
He mentioned that all company brands do well but within shampoo category Pantene was doing
well. He did not have a definite answer for other categories. However, he mentioned that HUL
had the best service in terms of the sales agents and the same day delivery in some cases.
Que.- Do you benefit from FSUs and other display scheme?
He mentioned that he received Rs.600 for branding a shelf space. Gave an example of Nestle
taking multiple shelfs to stock biscuits. Since the shop is small, he doesn’t see that many display
promotions.
Que.- Do the salesman come and check on the display schemes and advise how to go about it?
He mentioned that when a promotional activity is going on, in most cases the company agent
comes once or twice a month only. This is possibly due to the smaller branding area i.e. just a few
shelves and racks
Que.- How often do the salesmen visit the shop for stock?

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The salesmen visit once a week

Que.- What do you do in case of stock out?
They obtain stock from wholesalers Explicitly mentioned HUL’s Shikhar app but said he prefers
to call the salesmen and coordinate with him directly instead of the app.
Que.- What are the credit terms?
1-week credit period.
Que.- What is the policy for damages?
He mentioned that it’s not too great and tedious. Therefore, most of the time they don’t even
ask for a refund.

Interview 6: Telephonic Interview with Business Executive – Mr. Nandan Singh

Que.- Can you explain the retail format and what exactly means by the trade margins and
schemes that P&G runs?
Brand Margin is when even if the retailer takes 1 piece of product, P&G has to give it to them.
Scheme differs month to month. The company keeps updating it.
Que.- What is the band margin for different products?
Brand Margin on Gillette is 12%, Tide/Ariel is 8% and Pampers is 15-20%.
Que.- What is the scheme this month?
This month scheme is that – for tide on buying 1500 worth of tide, they get 3% additional; for
Pampers they get 6+1.
Que.- How does this differ for different store formats?
This differs for different store formats – traditional, pharmacy and beauty/cosmetics shops. They
have different schemes because for example, cosmetic stores sell more of Gillette or Olay,
traditional sell more of Tide/Ariel. So the schemes are different category wise. Then there is a
corporate plan, which is again different for mini markets, super markets. There are 3 super
formats in Jharkhand, that too in Ranchi
Que.- What is large A and large B store format?
If the sales are improving and reach beyond a limit for a large B store, it is shifted to large A store.
Shelf-counter shops become mini markets.
Que.- What is the share of shelf required for different P&G products?

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The company takes share of shelf in mini markets. So this has to be there in all stores. For
example, Tide/Ariel has a share of shelf of 35% minimum.
Oral B and Gillette do not have shelves. They have stands or FSUs. The companies get additional
3% category wise for display. It differs for different sectors.
Que.- What do you mean by sectors?
There are two sectors – 1 &2. So, if sector 1 salesman visits on Monday, sector 2 salesman will
visit on Thursday. Sector 1 products are different from sector 1.
Que.- How do schemes differ for these sectors?
Sector 1 - If the store target is achieved, then the retailer gets 2% additional. Otherwise for
maintaining Share of Shelf, he gets 3% anyway. This 2%, he gets next month after the 15th of that
month on any transaction or trade he does with the company.
Sector 2- Gillette, Oral B. these have FSUs. The company people check if this is proper through
pictures on their apps. If this passes in the audit, then 3% they get for the category space. Then
there is a focus brand per month for which the retailers get additional 2%. This minimum amount
has to be given to each store.
Que.- What is the focus brand this month?
Currently the focus brand in sector 2 is Oral-B and a new variant of Gillette.

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